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September 2013
E-commerce capabilities assessment:
-Security of
e-payment systems-
Case of the Democratic republic of
Congo
Master Thesis
Author: Esperant NGONGO
Supervisor: Prof. Roberta Bernardi
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Outline
E-commerce capabilities assessment: security of e-payment
systems. Case of the Democratic republic of Congo
Table of Content
Abstract Preface
Acknowledgement
1. Introduction 6
1.1. Introduction 6
1.2. Motivation of the subject 6
1.3. Problem statement 7
1.4. Research questions 7
1.5. Scope and limitations 7
1.6. Methodology 8
2. Literature review 9
2.1. Overview 9
2.2. Definition of e-commerce 9
2.3. Types of e-commerce 10
2.4. M-commerce 12
2.5. E-commerce capabilities overview 12
2.6. Information system capabilities 13
2.6.1. Introduction 13
2.6.2. Information system capabilities overview 13
2.6.3. Information system capabilities in the scope of
e-commerce 15
2.6.4. Information technology infrastructure for e-commerce
16
2.7. Information security capabilities for e-commerce 18
2.7.1. Introduction 18
2.7.2. Overview of the security of e-commerce 18
2.7.3. Overview of the security of e-commerce network 26
2.8. Securing e-payment systems for B2C e-commerce 28
2.8.1. Payment cards 29
2.8.2. Electronic cash 30
2.8.3. Stored-value card 31
2.8.4. E-checking 31
2.8.5. Security of mobile payment 33
2.9. Conclusion on the literature review 33
3. Research methodology 34
3.1. Introduction 34
3.2. Research design and justification 34
3.2.1. Introduction 34
3.2.2. Choice of the methodology 36
3.3. Data collection and sampling 37
3.3.1. Sampling technique 37
3.3.2. Sampling definition 38
3.3.3. Data collection method 39
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3.4. Data analysis 40
3.4.1. Introduction 40
3.4.2. Data analysis method 41
4. Research findings 42
4.1. Response rate 42
4.2. Research findings 42
4.2.1. Working experience of respondents 42
4.2.2. Job position 43
4.2.3. E-payment services offered 44
4.2.4. Issues faced by e-payment systems 44
4.3. Specific findings for CIA security concept 45
4.3.1. Confidentiality 45
4.3.2. Integrity 46
4.3.3. Availability 48
4.4. Summary 49
5. Conclusion and recommendations 50
5.1. Introduction 50
5.2. Conclusion 50
5.2.1. E-payment system 50
5.2.2. E-payment system security 50
5.3. Recommendations 52
5.4. Areas for further studies 53
5.5. Study limitations 53
6. References / Bibliography 54
7. Appendix 57
7.1. List of abbreviations 57
7.2. List of figures 58
7.3. List of table 58
7.4. Questionnaire 69
Statement of originality
In presenting this dissertation for assessment, I declare that
it is a final copy including any last revisions. I also declare that it is
entirely the result of my own work other than where sources are explicitly
acknowledged and referenced within the body of the text. This dissertation has
not been previously submitted for any degree at this or any other
institution.
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Esperant NGONGO MBULI
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Abstract
This research study investigates to what extend the e-payment
systems are secured in order to contribute to the development of e-commerce
capabilities in the Democratic Republic of Congo (DRC). This study has also
assesses the existence of adequate e-commerce capabilities in terms of
e-payment systems and how their security can be leveraged to really contribute
to their effective use in the electronic payment transaction.
The research uses the survey method with questionnaire based
on closed questions built from the checklist published by the International
Standards Organization (ISO) as framework for information security
assessment.
The major conclusion of this study is that some capabilities
for e-commerce such as e-payment systems are available in the country but their
security must be enforced and managed for the advert of e-commerce era which is
yet in its inception phase.
Acknowledgement
I would like to thank the following people who provided to me
significant support for the completion of my MBA program and this research,
namely:
- Professor Roberta Bernardi, my supervisor, she has been a
great source of advice and guidance in the development of this research and her
valuable
support on reading material was highly appreciated. Thank you so
much.
- My lovely wife, Tina who has been an important pillar and
source of motivation through my MBA program and during this research. Thank you
for your patience and lovely commitment shown.
- My children, Grace, Kelly, Joyce, Marie-Rose and Esperance
Junior to whom I missed during the time I was involved in my journey to MBA and
for the fun time sacrificed to the benefit of this research. This study is
dedicated to you as source of motivation and inspiration for your studies as
well.
- The professors at Robert Kennedy College who gave us
valuable intellectual foods and reading materials for the acquisition of
knowledge in Advanced Information Technology and Business Management. Thank you
for your devotion.
- Above all, the Mighty GOD for the blessing given to the
success of this achievement
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Chapter 1: Introduction
I.1. Introduction
Modern electronic commerce (e-commerce) is one of the biggest
commercial activities using the internet as channel of diffusion. The advance
and continuing development of internet technologies in telecommunications and
mobile applications has propelled the growth of E-commerce. Consequently making
it much easier to do business over the internet and reach mass audiences
globally and even in remote places.
E-commerce is now part of our lives and companies trading via
the internet are exposed in a high speed changing environment where business
opportunities changed frequently, according to the customer needs and
technology innovations.
How this technology can be implemented in least developed
country with poor telecommunication infrastructure, poor electronic payment
systems, lack of regulation and capabilities in the subject matter?
Despite the fact that many studies focused on showing that
less developed countries face a lack of telecommunication infrastructures and
electronic payment systems, recent developments of mobile telephony in Africa
change the way e-commerce can be perceived in this part of World because of the
opportunities discovered in this emerged market.
So the question is not only about the infrastructures for
e-commerce, which really exist, but in term of the existence of capabilities
for e-commerce and how they can be leverage to develop the e-commerce.
I.2. Motivation of the subject
E-commerce is a new form of digital economy development where
no physical boundary and face-to-face interaction are necessary to do
commercial transaction.
In the Democratic republic of Congo (DRC), the fact that the
growth of mobile technology and the large penetration of mobile telephony
companies in the country, despite the fact that the telecommunication
infrastructure in not well developed, can constitute an opportunity for the
e-commerce development.
However, there is no research available to assess effectively
the capabilities readiness of the country for the development of e-commerce.
The aim of this work is to assess if adequate e-commerce
capabilities exist in the country and how they can be leveraged to the
development of e-commerce. The focus will be given to the payment systems and
their security.
I.3. Page | 7
Problem Statement
E-commerce is related to Internet technologies and electronic
payment systems which are not well developed in most of the least developed
countries like the Democratic republic of Congo (DRC). However, the development
of the mobile telephony market offers some opportunities of getting internet
access and m-commerce facilities in most of urban and suburban areas with high
concentration of population.
The objective of this work is to define how e-commerce can be
implemented in DRC taking into account all constraints of e-commerce
capabilities.
Because the internet access in only present in urban areas,
the research will focus only on companies located in such areas.
The poor penetration of the internet and the lack of
electronic payment systems can be recognized as a detriment to the development
of e-business in the country. Even if there is a regulation board for
telecommunication and information technology, there are no rules defined for
electronic commerce and electronic payment.
I.4. Research Question
Among many research questions which can be raised in the
e-commerce field in the developing country like DRC, the choice for this
research is to respond to the most fundamental question regarding e-commerce
capabilities.
Do adequate e-commerce capabilities exist in the
country and how to leverage them to the development of e-commerce? Does
adequate security of payment systems exist in order to promote online
payment?
I.5. Scope and limitation
This research in not intended to examine all capabilities
involved in the development of e-commerce. According to the actual stage of
telecommunication infrastructure development in the country, the adoption of
the mobile telephony system as primary telecommunication media and the
opportunity currently exploited by three major operators in mobile fund
transfer system, the scope of this work will be limited to the main
capabilities which are likely to be preponderant to an effective e-commerce
development.
The following capabilities will be covered by the study:
1. Information and communication technology (ICT) which will
include telecoms and computer infrastructure.
2. Payment systems capabilities which must be used for online
transactions.
3. Security of the identified payment systems which can be
used for the development of e-commerce.
Of course some aspect of regulation will be considered also as
governance capabilities.
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The study will be limited to the capital city of the country,
Kinshasa, where there is a potentiality of e-commerce development according to
the fact it is the first business center in the country where most of big
businesses and banks have their head quarters.
Findings and recommendations will be then easily replicated to
the most of urban areas of the country where minimal capabilities are
available.
I.6. Methodology
There are no available statistics published in the country
about e-commerce; the e-commerce is not yet in inception phase. This work will
be among the first step in the research about the e-commerce development in the
country.
Therefore, the objective of the research can only be achieved
by collecting data from different available sources of information in areas
where e-commerce capabilities are likely to be present ; academic researches,
special journal in IS and web resources. The research will also use data
collected from survey via interviews of organizations which will be involved in
the e-commerce development, mostly banks, regulation board and Mobile
operators.
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Chapter 2: Literature review
II.1. Introduction
This chapter will discuss e-commerce terminologies involve in
the good understanding of the key concepts of e-commerce like its definition,
forms and organization. It'll also provide a clear understanding of
capabilities which are necessary for the development of e-commerce.
There are a lot of reading resources available covering the
e-commerce subject but a very few manual about e-commerce capabilities have
been available for this research. Most of available information has been
collected through master or doctoral thesis and form special technological
journal.
II.2. Definition of e-commerce
Many authors defined e-commerce by designing a commercial
activity conducted by the use of internet and/or electronic systems (Turban et
al. 2008, Laudon and Laudon, 2006, Cobham, 2005).
Among the definitions chosen, Turban et al. (2008: p4)
describe e-commerce as «a process of buying, selling, transferring, or
exchanging products, services, and/or information via computer networks,
including the Internet».
The Laudon's used the term Internet and web for the business
transaction to define e-commerce (K. Laudon & J. Laudon, 2006), while a
year before Graham Curtis and David Cobham (2005, p212) defined e-commerce in
its broadest context as «any exchange of information or business
transaction that is facilitated by the use of information and communication
technologies».
In the same vision as Curtis and Cobham, Beynon-Davies (2002)
separate the concept e-commerce which constitute the exchange of goods and
services between businesses, individuals or groups by the use of Information
and Communication technology (ICT) and I-commerce which is the use of internet
technologies to enable e-commerce.
It means that the development of e-commerce couldn't be
possible without the development of ICT and specially the Internet technology
which is one of the key drivers for e-commerce development.
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II.3. Types of e-commerce
It is better to know how e-commerce is classified to
understand the different business models provided by this new economy.
Turban et al. 2008, K. Laudon and J. Laudon, 2006, David
Cobham, 2005) classify electronic commerce by the nature or the way the
participants involve in the electronic transaction. According to this point of
view, three forms of e-commerce are identified:
1. Business-to-consumer e-commerce (B2C)
2. Business-to-business e-commerce (B2B)
3. Consumer-to-consumer e-commerce (C)
However, with the development of mobile and wireless
technologies, the use of e-commerce, which was primarily conducted through
fixed computers and networked terminals, can now be conducted wirelessly. This
new development gives a new concept of e-commerce called Mobile commerce or
m-commerce (Turban et al. 2008).
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